Hard work leads to improved outlook at Severn Trent

Severn Trent was looking at a larger net benefit for the financial year on Wednesday, updating the market on its performance in the three months to 31 December 2015.

Severn Trent

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The FTSE 100 water utility increased its guidance for the net reward from outcome delivery incentives for the financial year to £15m.

ODIs are set by Ofwat, as a way to incentivise water utilities to provide as seamless a service as possible to consumers.

Besides that, Severn Trent's board said it continued to perform in line with expectations, and there was no material change to the technical guidance for the year.

"Our customers are at the heart of all we do, and we continue to invest in operational improvements to build a better business for customers, colleagues and shareholders", said chiev executive Liv Garfield.

Garfield was "delighted" that the company's hard work was translating into a net ODI benefit of £15m for the full year.

"Having locked in the savings set out in our Final Determinsation, we are working hard to identify further efficiencies, while continuously improving our services, and will provide a further update with our results in May", Garfield added.

Severn Trent was due to announce its preliminary results for the period ending 31 March, on 24 May.